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Personal
tax rates cut and thresholds lifted in Budget
The
top marginal tax rate will be cut from 47 to 45 per cent and the
threshold at which it applies lifted sharply from $95,001 to $150,001
in personal tax changes announced in the Budget.
The
threshold 30 per cent will increase to $25,001 (previously $21,600);
while the 42 per cent marginal tax rate will be cut to 40 per cent and
the threshold will increase to $75,001 (previously $63,001).
Treasurer
Peter Costello said the changes will apply from 1 July 2006. From that
date all Australian taxpayers will share in tax cuts worth $6.4 billion
in 2006-07 and $36 billion over the next four years.
This
was in addition to the $21.7 billion tax cuts over four years which
were announced in the 2005‑06 Budget.
Taxpayers
on $150,000 will benefit the most with an annual tax saving of $6,200
(11 per cent of tax paid) while taxpayers on between $40,000 and
$60,000 will receive a tax savings of $510 (or between 3.5 per cent to
6 per cent of tax paid).
From
1 July 2006, the low income tax offset (LITO) will increase from $235
to $600 and will begin to phase-out from $25,000. Taxpayers eligible
for the full LITO will not pay tax until their annual income exceeded
$10,000 (up from $7,567).
In
addition, the Medicare levy low income phase‑in rate will be
reduced from 20 per cent to 10 per cent. This means more low income
taxpayers will pay a reduced Medicare levy rate.
The
fringe benefits tax rate will also be reduced from 48.5 per cent to
46.5 per cent, effective from 1 April 2006.
“The
2006‑07 Budget tax cuts ensure that over 80 per cent of taxpayers
face a top marginal tax rate of 30 per cent or less,” Mr Costello said.
“A taxpayer will need to earn $121,500 to pay an average tax rate of 30
per cent.”
The
increase to $150,001 for the threshold at which the top rate cuts in
will mean that around two per cent of taxpayers will be subject to the
top marginal tax rate and taxpayers will not reach the highest marginal
tax rate until they earned more than three times average weekly
earnings.
The
Budget changes also benefit senior Australians. From 1 July 2006,
senior Australians who receive the Senior Australians Tax Offset will
be able to earn more income without paying tax.
Singles
will be able to have taxable income up to $24,867 (up from $21,968) and
couples up to $41,360 (up from $36,494). The Medicare levy thresholds
that apply to senior Australians will also be increased to ensure that
they do not pay the Medicare levy until they begin to incur an income
tax liability.
Changes to tax rates and thresholds
|
Current tax
thresholds
Income range ($)
|
Tax Rate
%
|
New tax thresholds
from 1 July 2006
Income range ($)
|
Tax rate
%
|
|
0 - 6,000
|
0
|
0 - 6,000
|
0
|
|
6,001 - 21,600
|
15
|
6,001 - 25,000
|
15
|
|
21,601 - 63,000
|
30
|
25,001 - 75,000
|
30
|
|
63,001 - 95,000
|
42
|
75,001 - 150,000
|
40
|
|
95,001+
|
47
|
150,001+
|
45
|
Superannuation Streamlined
Australians
aged 60 and over who have already paid tax on their superannuation
contributions and earnings will no longer pay superannuation benefits tax
from 1 July 2007, under a plan announced in the Budget, under sweeping
superannuation changes announced in last night’s Budget.
The
plan also abolishes reasonable benefit limits (RBLs), introduces new
streamlined rules for contributions, and gives individuals greater
flexibility as to how and when they wish to draw on their
superannuation in retirement.
But
the Government declined to scrap the 15 per cent superannuation
contributions tax, as it had been urged to do by the superannuation
industry.
Most
of the superannuation changes announced in the Budget are un-costed and
were described as a “plan”. The Government plans to consult until
August on the proposals outlined briefly in the Budget speech and in a
lengthy “Plan to simplify and streamline superannuation”
superannuation. Only then are proposals likely to be finalised.
The
Government said the removal of the benefits tax will sweep away the
complexities retirees face when taking their benefits.
Those
contemplating retirement will not have to worry about, or pay for,
professional advice on the tax implications of their superannuation
benefits, the Government argued.
As
superannuation benefits will no longer be assessable income, there will
be an incentive to continue to work while drawing down on
superannuation as people will pay less tax on their work income.
The
preservation age will not be changed and people could still access
their superannuation benefits before age 60, although they will be
taxed on their benefits under new simplified rules.
As
part of the superannuation reform there will also be reform of the
pension assets test taper rate which will reduce from $3 to $1.50 per
fortnight for every $1,000 of assets above the free area with effect
from 20 September 2007.
Treasury
said the current taper rate of $3 meant that a retiree lost more age
pension than they earned on their additional savings if they did not
achieve a return of at least 7.8 per cent a year. This was a large
disincentive to save for retirement.
The
Government will also provide $19.2 million to improve the
responsiveness of the Australian Taxation Office (ATO) to inquiries
about compliance with the Superannuation Guarantee arrangements.
Economic growth up and
inflation in check
Economic
growth will increase to 3.25 per cent in 2006-07, from an expected 2.5
per cent in 2005-06, with the engine of growth expected to be foreign
trade, rather than the current
domestically
driven growth, the Budget’s economic forecasts predict.
Despite
the increase in growth inflation is expected to remain contained, with
the Consumer Price Index growing by 2.75 per cent in 2006-07 compared
to the expected 3 per cent inflation in the current financial year.
Mr
Costello told Parliament “Australia’s impressive economic performance
of the last decade is set to continue. The outlook is for ongoing solid
economic growth coupled with low unemployment and moderate inflation.
“Australia’s
sustained economic growth is the result of the Government’s strong
economic management and ongoing economic reform. Maintaining this
course will secure the achievements of the past decade and provide the
foundation for future growth and prosperity.
“We
will face further challenges in the future. Some — like the ageing of
the population — we can predict now and begin to prepare for. Others
may come with a surprise. But we will meet those challenges stronger
because we are free of Government debt.”
According
to the Budget papers “Real GDP is forecast to grow by 3¼ per cent in
2006‑07, up from 2½ per cent in 2005‑06. The sources of
growth are expected to continue to shift from the domestic sector to
the external sector, although at a slower pace than anticipated in the
Mid‑Year Economic and Fiscal Outlook 2005‑06.
“Household
consumption growth is expected to remain moderate, as households
continue to experience a period of weaker growth in dwelling wealth.
Dwelling investment is forecast to subtract marginally from GDP growth,
but growth in business investment should continue to support economic
activity. The outlook for export growth is positive, underpinned by the
significant investment undertaken to boost productive capacity,
particularly in the mining sector. Import growth is forecast to
moderate from the recent strong rates of growth.
“The
current account deficit is expected to widen to 6¼ per cent of GDP in
2006‑07.”
Household
consumption is forecast to grow by 3 per cent, up slightly from an
expected 2.75 per cent this year, while housing investment will fall by
1 per cent compared to 3 per cent this year. Exports are expected to
grow by 7 per cent compared to only 2 per cent this year, while steady
economic growth is expected to maintain the strong growth in imports –
7 per cent compared to 6 per cent in 2005-06.
Employment
growth is expected to fall back slightly to 1 per cent (2 per cent in
2005-06) and the participation rate will be a little lower (64.25 per
cent versus 64.5 per cent) and the unemployment rate is expected to be
unchanged at 5.25 per cent.
Compliance costs reduced for small business
The
Government will make changes to taxation rules affecting small business
which will reduce taxes on small business by $435 million over
four years and improve eligibility thresholds for the small business
tax relief.
The
Government said the package will improve alignment across the main
small business tax regimes: the Simplified Tax System (STS), CGT and
GST and simplify the tax affairs of over two million small businesses,
including 65,000 businesses that will become eligible for the STS.
The
measures include changes to:
- Increase
the STS average annual turnover threshold from $1 million to
$2 million and remove the $3 million depreciating assets test
from the STS eligibility requirements. Depreciating asset
roll-over relief will also be extended to STS taxpayers to ensure
businesses can be restructured without triggering a taxing point;
- increase
the net assets threshold from $5 million to $6 million for the CGT
small business concessions and allow STS taxpayers to be eligible
for the concessions without having to satisfy the net assets
threshold;
- Increase
the cash accounting turnover threshold from $1 million to $2
million for the goods and services tax (GST) concessions for small
businesses and align certain GST definitions of turnover with the
STS definition. The Government will also discuss the simplified
GST accounting method with the Commissioner of Taxation and
suggest that the threshold be aligned with the other thresholds at
$2 million; and
- Allow
STS taxpayers to pay quarterly pay as you go installments on the
basis of GDP-adjusted notional tax.
Tax
changes to reduce compliance costs for employees and employers include:
- Increasing
the in-house fringe benefits tax-free threshold from $500 to
$1000.
- Extending
the fringe benefits tax (FBT) concessions for remote areas by
broadening the definition of remote where the shortest practicable
route involves travel over water.
- Extending
the employee share scheme and related CGT provisions to stapled
securities that include ordinary shares that are listed on the
Australian Stock Exchange.
- Removing
the part-year tax-free threshold for resident taxpayers ceasing
full-time education for the first time. This will allow immediate
access to the full $6,000 tax-free threshold.
Reporting
requirements for trusts reduced
The
Government announced several changes to tax arrangements for trusts to
clarify obligations and reduce reporting requirements.
The
measures include:
- Allowing
family trust elections to be revoked or varied in certain limited
circumstances. As there is currently no provision for
family trust elections to be revoked, this will increase
flexibility. The definition of the family group will be broadened
to include lineal descendants, and certain changes in family
circumstances will be recognized for the purposes of exempting
distributions from family trust distribution tax.
- Simplifying
the reporting requirements under the ultimate beneficiary rules so
that trustees of closely held trusts need only identify and report
first-tier trustee beneficiaries in receipt of trust
distributions.
- Ensuring
that trust distributions to non-residents trustees are taxed in
the same way as distributions to other non-resident beneficiaries.
- Simplifying
the tax collection mechanism for taxable income distributed to non‑residents
by Australian managed funds. This measure reduces compliance costs
for the managed funds industry by replacing several tax collection
regimes with multiple rates with a single tax collection regime
with a single rate. As a result, Australian managed funds and
custodians will collect a non‑final withholding tax at a
single rate — the company tax rate — on this income regardless of
the identity of the non‑resident, instead of multiple rates
ranging from 29 to 48.5 per cent as is currently the case.
CGT Compliance
costs cut
The
Government will amend the small business Capital Gains Tax (CGT)
concessions to reduce compliance costs for small business as well as
increase the availability of the concessions.
The
amendments are in response to the recommendations of the Board of
Taxation.
The
Government will improve the operation of the small business CGT
concessions by making changes to the maximum net asset value test, the
active asset test, the 15‑year exemption, the retirement
exemption, the small business roll‑over, and how the concessions
apply to partnerships.
The
Board of Taxation report has 39 recommendations. Of these, 26
recommendations seek legislative amendments and 13 relate to
administrative matters. The Government has accepted all but one of the
legislative amendment recommendations, three with minor amendments
favoring the taxpayer. The Australian Taxation Office (ATO) has
accepted all recommendations relating to administrative matters.
The
Government has not accepted the recommendation dealing with the
situation that where the retirement exemption applies in relation to
payments from a company, it is possible for various deemed dividend
provisions to apply to the transaction.
To
improve access to concessions, the Government said it will replace the
current controlling individual 50 per cent test for CGT with the new
significant individual 20 per cent test that can be satisfied either
directly or indirectly through one or more interposed entities.
The
new significant individual test will enable up to eight taxpayers to
benefit from the full range of concessions instead of the current limit
of two controlling individuals.
All
amendments will apply to CGT events that happen from the 2006-07 income
year.
Depreciation eligibility improved
The
Budget saw depreciation allowances for business improved.
The
Government is raising the diminishing value rate under the uniform
capital allowance (UCA) regime for determining depreciation deductions
from 150 per cent to 200 per cent for all eligible assets.
This
is equivalent to a 33 per cent increase in the allowable
depreciation rate for these assets.
The
more generous arrangements will enhance the ability of Australian
business to stay up to date with new technology, the Government said.
“By
increasing the incentive to invest in new plant and equipment, the
measure ensures businesses can keep pace with changes in technology and
remain competitive,” Treasurer Peter Costello said.
“The
measure encourages efficient investment by ensuring that depreciation
deductions for income tax purposes more closely reflect an asset’s
actual decline in value.”
Increasing
the diminishing value rate from 150 per cent to 200 per cent will
increase the tax deductions that taxpayers could claim early in an
asset’s effective life, reducing the cost of holding the asset in net
present value terms.
The
measure will apply to assets used for a taxable purpose acquired on or
after 10 May 2006.
This
includes assets that taxpayers start to hold (for example, through
leasing arrangements) for the purposes of the UCA regime.
The
Government also announced a package of measures aimed at increasing activity
in the venture capital sector.
The
Government will introduce an early stage venture capital limited
partnership (ESVCLP) investment vehicle providing flow‑through
tax treatment and a complete tax exemption for income, both revenue and
capital, received by its domestic and foreign partners.
This
will progressively replace the existing pooled development fund program
which will be closed to new registrations after 31 December 2006.
To
qualify, the ESVCLP will have a maximum fund size of $100 million and
total assets of investee companies cannot exceed $50 million
immediately before investment.
Family
assistance levels lifted
The
Government unveiled changes to Family Tax Benefit Part A, lifting the
amount families can earn and still receive the maximum amount.
Last
year the Government announced that it will increase the amount from
$33,361 to $37,500 from 1 July 2006.
Instead
this will now be increased to $40,000, providing additional assistance
to almost half a million Australian families, at a cost of $993 million
over four years.
The
Government will also expand eligibility for the Large Family Supplement
to include families with three children with effect from 1 July this
year.
This
will provide additional assistance to nearly 350,000 Australian
families with a payment of an extra $248 per year.
The
Government also will remove the limit on the number of subsidised
outside school hours care and family day care places.
Treasurer
Peter Costello said this meant any new service set up by any eligible
group will be funded.
“There
will be no limit on funded places. It is expected that this will
generate an additional 25,000 places by 2009.”
This
was expected to lift childcare places to more than 700,000 in 2009.
From
1 July parents will be eligible to receive the new Childcare Rebate.
This will rebate 30 per cent of out of pocket childcare expenses up to
$4,000 per child per annum.
Growth gets surplus to $10 billion despite
generous tax cuts
Treasurer
Peter Costello’s 11th Budget estimates a cash surplus of $10.8 billion
in 2007-08, down from an expected surplus of $14.8 billion in the
current financial year.
The
surplus is expected to shrink from 1.5 per cent of Gross Domestic
Product (GDP) in the current year to 1.1 per cent in 2006-07.
The
$10.8 billion surplus has been struck after personal tax cuts of $6.4
billion in 2006-07. Other tax cuts and decisions reducing Government
revenue including accelerated depreciation arrangements for business
will reduce revenue by $6.95 billion in 2006-07 and about $39 billion
over four years (including 2006-07).
On
the expenditure side of the Budget, spending policy decisions increased
expenditure by $4.27 billion in 2006-07. However the actual impact on
the Budget bottom line will be reduced to $2.87 billion – mostly by the
tightening of eligibility conditions for a range of programs ($1.3
billion).
On
a cash basis the projected budget surplus is 1 per cent of GDP in the
three out-years covered by the Budget Forward Estimates: 2007-08 to
2009-10.
The
dollar value of the cash surplus is expected to fall slightly to $10.6
billion in 2007-08 before rising to $11.2 billion the following year
and $12 billion in 2009-10.
On
an accruals basis the Fiscal Balance is forecast to be $10.3 billion (1
per cent of GDP) in 2006-07, down from $16 billion (1.7 per cent of
GDP) in 2005-06.
Unveiling
the Budget in Parliament last night, Mr Costello said that, “With
disciplined and prudent management our economy has come through these
storms intact — in fact growing, in fact growing in the longest
continuous stretch our nation has ever experienced.
We
have now eliminated the $96 billion of net debt that Labor left the
Australian Government when it left office. Our Budget is in surplus for
the 9th time in 10 years: ‑ in 2006‑07 a forecast surplus
of $10.8 billion.
Now
the Australian Government is debt free in net terms. We do not have to
collect taxes to pay the Government’s interest bill. We are saving over
$8 billion per annum in interest payments”
Year-end tax
planning: Business 30/6/05
Year end tax planning is an issue that should be
addressed by all businesses whether they are large, medium or small
companies; trusts; partnerships or sole proprietors. Ideally, tax planning
should occur on an ongoing basis throughout the year and not just at
the end of the year.
All tax planning should consider the long term
consequences of any arrangement. Other issues such as managing cash
flow, likely costs and benefits and the potential impact of Part IVA
(ie. the general anti avoidance rules) should be considered together
with any tax saving. Also be aware of tax schemes that are advertised
only at the end of the tax year. The Tax Office is particularly focused
on mass marketed tax schemes. Make sure the promoter has obtained a
Class Ruling and that the details of the scheme accord with that
ruling. As part of year-end tax planning, taxpayers carrying on a
business should review their expenses to determine appropriate
strategies to either –
• increase their taxable incomes (to absorb losses and
other credits and tax that might be lost); or
• defer the earning of income to a future year of income
and gain a permanent timing advantage by deferring the payment of tax
(eg. a company could delay distributing dividends).
Varying the basis on which deductions are claimed or
varying the timing of the derivation of income can be used to achieve
any or all of these objectives.
Deductions are allowed to the extent that expenses (not
being private or capital expenditure) are incurred in deriving the
taxpayer’s income, or are necessarily incurred in carrying on the
taxpayer’s business for the purpose of gaining or producing assessable
income. It is not essential for a payment to have been made for a tax
deduction to be allowed for expenses. It is sufficient that a firm
order has been placed and the contract has been entered into.
Claims for depreciation are based on the capital cost of
plant and equipment including installation costs. Other claims such as
subscriptions, donations, gifts and superannuation contributions are
deductible only in the income year they are paid.
Derivation of
income
Altering the timing of income can influence the income
year when the income is taxed. The timing for the derivation of income
varies depending on the status of the taxpayer’s activities. Taxpayers
who are required to account on a cash receipts basis derive their
income when cash or its equivalent is received from the customer.
Accruals taxpayers derive their income when there is a
right to receive the income. This is usually the date the invoice is
issued. An estimate of work-in-progress is generally not sufficient to
ensure that services income is derived. However, if a service contract
exists then work-in-progress may be derived if the contract requires a
periodic payment.
Investment income and employment income is derived when
the payment is made or when the payment is otherwise dealt with in
accordance with the directions of the recipient. Payments received in
advance for the provision of services are treated as income when the
services have been performed with the following conditions required to
be satisfied -
• the advance payment is refundable for services not
performed, and
• the taxpayer’s keeps the advance payment in a suspense
or unearned income account, or the unearned income is excluded from the
profit and loss account.
Capital gains
Where a capital gain has been derived on the disposal of
an asset, the amount will be included in the taxpayer’s assessable
income. Where there are other assets that have reduced in value and
would result in a capital loss on disposal, it may be of benefit to
dispose of those assets to crystallize the losses and thereby reduce
the amount of assessable capital gain. The losses can be offset against
both discounted and non-discounted capital gains. For discounted gains
the losses must be offset before the 50% discount is applied.
This strategy is of particular benefit with shares as
these can be traded with relative ease. Another parcel of shares could
even be acquired at a lower market cost if it is desirable to have
those shares in the investment portfolio.
Bad debts
The
debt must satisfy all of these conditions –
•
it must exist;
•
it must be bad (not merely doubtful; but neither is it necessary that
it be irrecoverable);
•
it, or a part of the debt, must be written-off as a bad debt before 1
July;
•
it must have been included as assessable income in the same year or an
earlier one.
A
debt cannot be written off as bad on the last day of the year if the
debt was also incurred on that day.
The
Tax Office accepts that a debt is bad for tax purposes if (for example)
—
•
the Board or managing director has decided as a matter of commercial judgment,
that the loan is bad in that it is unlikely to be recovered; and
•
the decision is recorded in writing. With that documentation of the
decision, the bad debt may be claimed in that year, even if it is not
in fact written-off in the books of accounts until after 30 June.
The
minimum requirements for proving that a debt is bad include –
•
issuing a formal demand notice;
•
cessation of trading with that firm or person;
•
valuation and/or seizure of security; and
•
a thorough financial analysis of the debtor.
It
is very important that the debt, having been identified as bad, is
‘written off’ by the end of the income year.
In
TR 92/18, the ATO accepts a debt is ‘written off’ if –
•
a Board, in writing, authorises the writing off before year end and
writes off the debt in the books of accounts in the next year; and
•
a written recommendation by the financial controller to write off the
debt is agreed to by the managing director and there is a physical
writing off in the books of accounts in the next year.
It is no longer necessary (before writing-off) to have
taken all available steps to recover the debt by the end of the year.
Note that if a deduction has been obtained for a bad debt, but the
debtor repays the debt, the repayment is assessable income (in the year
repaid)
WARNING: Business taxpayers are required to declare
their income on either a cash receipts basis or on an accruals basis.
Where business income is derived from the personal efforts of the
proprietor income would be returned on a cash basis. The income of
businesses that have professional staff or significant business assets,
would be required to account for their assessable income on an accruals
basis. Taxpayers that operate on a cash receipts basis cannot claim for
bad debts because the amount of the bad debt would not have been
included in their assessable income.
WARNING: Don’t wait until July to list amounts owing at
the end of June. By not reviewing outstanding debtors before the close
of the income year, the opportunity to treat some debts as bad debts
may be deferred until the following income year. If that opportunity is
lost, it will result in a higher tax liability in the current year
which will result in a timing loss.
TIP: Do not forget to claim the GST back on debts that
have been written off. You have a decreasing adjustment entitlement.
Accelerating
deductions
One of the simplest methods of decreasing taxable income
is to bring forward or accelerate the recognition of losses or expenses
even if those expenses have not yet been paid. This strategy involves
recognising deductions when the liability has been incurred.
In some instances, this may mean the actual amount of
the liability has not yet been quantified. There is an entitlement to
the deduction, however, provided the taxpayer is definitely committed
to the liability and it is capable of being reasonably estimated. This
could also include advancing repairs and maintenance expenditure or
advancing payments to tax agents or other recognised tax advisers in respect
of tax related matters.
WARNING: This strategy can also be used by those
taxpayers that have elected to be part of the Simplified Tax System
(STS). However, as claims can only be based on payments that have been
made it may have limited application given that there would have been a
cash flow impact in paying for the deductible expenditure.
Trading stock
It
is essential to physically count the stock on hand at 30 June. (Special
rules apply for STS taxpayers.)
If
it cannot be done on that date, document variations due to sales and
purchases. In the event of a tax audit, it is essential that the
taxpayer can prove the accuracy of trading stock values shown in the
return. Stock is treated as being on hand even if not on your premises,
so long as, at 30 June, you have the right to dispose of it.
Claims
for advance payments for trading stock can be made only if the value of
that stock is included in the return as part of —
•
the cost of goods sold; or
•
the value of trading stock at year’s end.
Obsolete stock
To
determine whether stock is obsolete (or becoming obsolete), the
taxpayer must consider –
•
age of the stock;
•
quantities expected to be sold during the year;
•
length of time between the last sale, exchange or use of the stock;
•
industry experience; and
•
price of the last sale and the price at which the taxpayer is prepared
to sell the item.
If the stock can be sold as scrap, it should be valued
at its scrap value. If it remains on hand and cannot be scrapped and
has no other use, it can be valued at nil.
Interest
Interest remains deductible while the borrowed funds
continue to be used to derive assessable income of the business.
Whether a claim for interest incurred is deductible will
be determined initially by the use to which the borrowed funds are put.
Claims are not allowed where the funds are used to earn non-assessable
income (eg. exempt distributions from a unit trust). An apportionment
may be necessary where both assessable and non-assessable income is
involved.
Interest
paid on funds borrowed for the following purposes is allowed –
•
repayment of partners’ capital contributions;
•
payment of undrawn partnership profits;
•
repayment of partners’ loan accounts;
•
payment of declared dividends; and
•
refinancing of other borrowings currently used by individuals to
produce assessable income.
Business travel expenses
Claims for business travel expenses (within or outside
Australia) incurred by self-employed persons and partners must be
supported by written evidence if they are away from their ordinary
residence for 1 to 5 nights.
Business taxpayers must obtain documentary evidence of
their business travel expenses. There are different rules for employees
receiving an allowance from their employer. Motor vehicle expenses are
subject to substantiation whether they are accrued by employees or
non-employees.
Motor vehicle expenses are not included as travel
expenses, but taxi fares (or similar expenses) and motor vehicle
expenses are treated as travel expenses if they relate to overseas
travel.
If
the travel is for 6 consecutive nights or more, additional records must
be kept.
You
must record in a diary (or similar) –
•
the nature of the activity;
•
the day and approximate time it began;
•
how long it lasted; and
•
where you engaged in it.
You
do not need to record non-business activities.
A New System in Processing Tax Returns
We now require client refunds to be
deposited directly into the client's bank account from the taxation
office. This enables clients to access their refund money
earlier. We will continue to receive and process the formal
Assessment Notice at our office and a copy of this can be requested at
any time.
When preparing tax returns this
year, clients will need to continue providing us with their bank
account details.
The process of paying our fee has also been streamlined,
in that, clients can now pay our invoice in one of four ways:
- B Pay
- Credit
Card over the phone
- Post
Office Payments
- Cash /
Cheque
Please note, the option of paying our fee from your
refund is no longer provided.
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